Financing Options - Condo Conversion

[Mike Gunter]

I have seen many posts regarding hard money lending for a new project. My situation is slightly different. I own a three family home in Massachusetts, purchased with an FHA loan with one of the owners, my son, still living there. We have owned it for almost 3 years, with very good cash flow, but have recently discussed converting into condo's and selling as individual units due t my relocation out of state.

I do not have the capital in the property as is (only about 25% equity based on recent sales of three families in the area) and my primary home I am unable to tap into for an LOC due to being over-leveraged according to my bank. The project will cost about $200K to complete, and has a completion date of 5 months. With a mortgage of $540k and the low end of the condo sales in the area being $360k per unit, the project has a great ROI. I am looking for some direction on where I can turn to for financing, and what my best options would be.

Thanks in advance for the replies.